jan 12
CONTINUED DELAYS FOR OIL PIPELINE TO BYPASS STRAIT OF HORMUZ
UNITED ARAB EMIRATES
Abu Dhabi - The pipeline that would allow Abu Dhabi's oil to bypass the Strait of Hormuz by going directly to the Gulf of Oman could be running behind schedule because of problems with the China Petroleum Engineering & Construction Corporation. Completion of the 350 kilometer long Abu Dhabi Crude Oil Pipeline (ADCOP) with a capacity of 1.5 million barrels a day has suffered numerous delays and was supposed to be completed by the beginning of January 2011. In spite of this, the United Arab Emirates' Oil Minister Mohammed bin Dhaen al-Hamli assured at the beginning of January that oil would be flowing in May or June. The issue between the Abu Dhabi National Oil Company and the Chinese construction company has to do with quality standards of the pipeline. The China Petroleum Engineering & Construction Corporation says it is ready to begin work, but on the basis of its own quality standards of which ADCO (the onshore unit of ADNOC) is charged with verifying the adequacy. Many analysts in Dubai feel that the pipeline will not be operational before August or September.